The planned bridge, connecting the border cities of Detroit and Windsor, Ontario, is “vital to the Canadian government’s efforts to expand trade, increase exports and create jobs,” Canadian Transport Minister Denis Lebel said at a press conference in Ottawa.

He couldn’t provide a timetable as to when construction might start, indicating it first required a permit from the White House. The Canadian government agreed in June to provide as much as $550 million for the construction of the new bridge, which is meant to help speed the flow of goods through one of North America’s busiest border crossings. Under the deal, the private sector would pick up the rest of the bridge’s tab and Michigan’s taxpayers wouldn’t pay a cent.

Associated Press

This July 17, 2012 photo shows traffic moving across the Ambassador Bridge over the Detroit River in Detroit.

The new bridge ran into opposition from a group called The People Should Decide, which had the backing of the private-sector owner of the other Detroit-Windsor link, the Ambassador Bridge. The group succeeded in getting a ballot initiative in Michigan that would have put to a referendum whether state voters wanted construction of a second bridge to proceed. The initiative failed, with 60% of Michigan voters rejecting it.

Canadian exporters have been demanding a second Detroit-Windsor crossing for years. The Canadian Manufacturers and Exporters, an Ottawa-based lobby group, estimates that roughly one-quarter of all Canada-U.S. trade–the world’s largest trading relationship–flows across the Ambassador Bridge, which it said creates bottlenecks and drives up costs.

CME president Jayson Myers said the new link will “provide unimpeded highway-to-interstate access between Ontario and Michigan, and help put North American manufacturing in the fast lane to prosperity.”

The new crossing would be jointly owned by the state of Michigan and the government of Canada. Once the builder and Canada have fully recouped their investment from tolls, Mr. Lebel said Michigan and Canada would split an equal share of the toll revenue.

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Canada Real Time provides insight and analysis into what’s making news in Canada, a country punching above its weight on the world stage thanks to its vast resources and strong banking sector. Drawing on the expertise of The Wall Street Journal and Dow Jones Newswires, we take a look at developments in fields ranging from business to politics to culture. You can contact the editors at canadaeditors@dowjones.com